Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 220

Posts Tagged ‘capital corporation’

KBRA Comments on ECN Capital Corporation’s Acquisition of Triad Financial Services, Inc.

Posted by fidest press agency su domenica, 29 ottobre 2017

torontoToronto (Canada) Kroll Bond Rating Agency (KBRA) most recently affirmed the BBB issuer rating with a Stable Outlook for ECN Capital Corporation (TSX: ECN), (“ECN Capital” or “the Company”), based in Toronto, Canada, on June 9, 2017. On October 25, 2017, ECN Capital announced the signing of a definitive merger agreement pursuant to which it will acquire Triad Financial Services, Inc. (Triad), an originator of prime and super-prime manufactured home loans, which are subsequently sold to financial institutions. The transaction is anticipated to close by the first quarter of 2018. ECN will pay USD100 million (CAD125 million) in cash for Triad. ECN and the senior management team of Triad have agreed to an incentive compensation plan inclusive of a set return on average equity target over the next five years. ECN will finance the transaction by redeploying capital capacity freed up from the sale of its U.S. commercial and vendor (C&V) business in February of 2017 and with the proceeds from the sale of certain rail assets in the third quarter of 2017. Similar to its previous acquisition of Service Finance Holdings, LLC, while further diversifying operations, Triad is a different business from ECN’s typical C&V targets; therefore, management continuity is key. KBRA believes the transaction will be neutral to the ratings of ECN. KBRA notes that this transcation helps to further diversify revenue and has healthy growth potential in terms of origination and revenue generation. Moreover, ECN, with CAD4.57 billion in total assets as of June 30, 2017, is an experienced acquirer with strict requirements for strategic opportunities. Additionally, the impact of the transaction on ECN’s leverage will be nominal.

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